US markets gain; Federal Reserve anxiety continues

The US markets closed higher on Wednesday, with the Nasdaq 100 Index recovering almost all of yesterday’s losses, as a rally in Apple Inc. lifted technology companies, while investors continued to speculate on the timing of interest-rate increases. The Fed is gauging the strength of the economy as it winds down a bond-buying program and considers raising rates. The policy officials will meet next on September 16-17. The street expects that data this week may show claims for unemployment benefits to fall, retail sales to improve, and consumer confidence rising, strengthening the case for higher rates next year as the world’s largest economy continues its recovery. On the economy front, US wholesale inventories rose by 0.1% in July. Inventories of durable goods such as autos and machinery increased 0.3%, but inventories of nondurable goods were flat. Wholesale sales advanced 0.7% following a 0.4% increase in June. At July’s sales pace, the inventory-to-sales ratio dropped a tick to 1.16 from 1.17. In June, the rise in inventories was revised down to 0.2% from 0.3%.

The Dow Jones Industrial Average added 54.84 points or 0.32 percent to 17,068.71, Nasdaq was up by 34.23 points or 0.75 percent to 4,586.52, while the S&P 500 ended higher by 7.25 points or 0.36 percent to 1,995.69. 

The Indian ADRs closed mixed on Wednesday; Dr. Reddy’s Lab was up by 0.37%, ICICI Bank was up 0.28% and Infosys was up 0.16%. On the other hand, Tata Motors was down by 0.26% and Wipro was down 0.06%.